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tv   The Call  CNBC  February 9, 2010 11:00am-12:00pm EST

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from neutral at bank of america, merrill lynch. monsanto shares are up 3%, more than 3%, 3.25, almost. credit suisse downgrading the retailer to neutral from outperform and gamestop are lower by a dollar. and lamar boosted its target range to 42 from 32 which is a big jump. >> a little housekeeping. >> what? >> i'm told we have a lot of e-mail comments about larry summers rattling on and on and on and not responding to our questions or our efforts to get him to stop talking. it was an equipment malfunction and mr. summers could not hear us trying to interrupt him. >> yes. we should note that. it was the first question -- >> i just want you to know he was not being a jerk by rambling on. he couldn't hear any questions we were asking. >> yes. i'm glad we did that.
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also on a housekeeping note, mark, i will see you tomorrow. i'll be making a stand from the alamo. >> i'm going to say 2010. i think we'll end up pretty much where we are right now. you'll be in texas tomorrow. >> yes. i'll be making a stand. >> i'll be here or in i've in a snow drift in jersey city. >> i'll find a chicken in texas like i do everywhere i go. >> no matter where she goes, she takes's picture of a thicken for me. >> have a good day. it's time for "the call." >> good morning and welcome to "the call." everyone. i am trish regan. we are 90 minutes into today's trading and we're looking at a rebound here amid equities as investors ponder whether or not the ecb will come to greece's rescue. we'll talk about how to make money in this market right now. hey, larry. >> good morning, trish. i'm larry kudlow. toyota recalling its prius worldwide. we'll have a live report plus ask is the worst behind in the
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embattled automaker? hello, melissa. >> we'll talk life with the ceo of a tech company whose stock has doubled in the past year ask who just reported strong earnings this morning. this is "the call" on cnbc. stocks moving higher this morning as hopes grow that the european union will help greece with its growing debt problems. on the corporate front, positive news from coke and mcdonald's also helping sentiment. right now take a look at how the s&p 500 is trading on the plus side about three-quarters of a percentage point. 1,064 is the trade there. we're off the highs of the session and we're up triple digits on the day. well, as soon as i said that it went away. i jifrnged it. there we go, thank goodness. take a look at the nasdaq right now as well. it is also trading in positive territory. it's up about two-thirds of a percentage point. trish, what's happening on the
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floor today? >> a lot of speculation about the ecb and real quickly, i just want to mention that the bernanke hearing for tomorrow has been postponed. the expectation is that that is related to weather issues, of course. we've got a big storm coming our way here on the east coast. in the meantime we're looking at a market that's been up triple digits. up 99 and 100 as i speak and this is primarily because there is hope that, in fact, greece's problems may be somewhat tempered by the european union coming in and doing some kind of rescue, some kind of bailout. i want to bring in bob pisani. we've got a lot to talk about, bob. first, bernanke hearing. >> it's just because of the snow, there's nothing else going on. it's that simple and that makes a lot of sense and that's what traders have been saying and we're waiting for an official reason. >> mr. trichet is on his way back from sydney as we speak a day early and a lot of people are putting their hopes on him coming forward with some kind of plan.
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>> it's actually moved the markets. remember in '92 with the treat they created the whole euro, and greece, italy, and portugal, what they got was lower interest rates and the credit rating because they associate it with the stronger economies, particularly germany. they are way, way outside of the deficit recommendations and it's not clear how well they'll be able to pull them back at this point and rein in the spending and that's a big issue. some big monetary from greece to germany, i don't know. german electric will have a hard time swallowing that. it will have to be cloaked in a very, very, not concealed, interesting way to make it palatable for the stronger economies. >> the real issue here is you have a lot of different countries with not so much in economic integration or a system that's economically integrated as people had originally anticipated. they vary drastically and they
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say, wait a second, why should i be shouldering the responsibilities going on in spain. . >> they come through a new kind of union. they reorganized their entire economy out of the german state that came out of 2003 and they're stronger than ever and looking at these southern tier countries and 3%, you're supposed to stay with the deficit and you're at 12% and beyond that. it doesn't make sense why they're bailing you out. >> it makes you question the future of the euro. i've questioned it from the beginning and it's very different political regimes. i know you want to talk about more things here. >> s&p, this is the most interesting note of the morning and s&p came out and said we're not sure too big to fail works anymore and they came out and specifically revised their credit outlook for citigroup to bank of america and we're not sure the government willes inially keep stepping in in the event there is something going here. i think that's a very important
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statement. >> i thought that sort of what we've been through is we learned that there has to be some way for the government to step in and help one of these institutions unwind. >> i think they are. i think what the s&p is saying at this point, it is not clear whether the government has the means or desire to do so. they're sounding the alarm about it. i think it's very important they did that. the stock's moving to the down side even though the market has been holding up. >> up about a penny at last check. bob pisani, thank you so much. i'll send it back to mr. kudlow. >> thank you, kids. >> toyota's problems continue. the women battled company says it will recall half a million prius and cars worldwide for braking problems. shares are trading up. the thing's had a comeback, up almost 3%. phil lebeau joins us with the very latest. >> you see the breaking news alert at the bottom there. the house oversight committee canceling the hearing scheduled for tomorrow looking into the federal government's investigation of these toyota
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recalls. the latest one announced early this morning in japan. the company recalling a good number of its hybrids, not all, but a good number of the hybrids, 437,000 and the majority of them will be 2010 prius models and it will include lexus models and one of the lexus sedans in the united states also involved in the recall. this morning akio toyoda once again went before reporters in japan and apologized for the latest recall. >> let me assure everyone that we will redouble our commitment to quality as a lifeline of our company. all of us at toyota, we have tackled the issue in close cooperation with dealers and with suppliers. together, we will do everything in our power to regain the confidence of our customers. in washington there are a number of people who want to talk to this gentleman, ray lahood.
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he was supposed to be at the house oversight hearing that was postponed. congress wants to ask him what the national highway traffic safety administration knew about teet and all of this brings up the topic that will get a lot of attention in the next couple of weeks about the amount of influence toyota has in washington. the main liaison is a former nhtsa vehicle defect investigator, the senate's lead toyota investigator out of west virginia has known toyota's family since 1960 and has helped the company on its search for sites here in the united states. also representative jaim jay harmid, represents the district in which toyota's u.s. headquarters are located and her family has financial ties with the company that she is part of, ties to toyota. all of this will get more attention in the weeks ahead as people in washington start to say, wait a second. how long have we known about the problems at toyota and why wasn't something done sooner? >> wow.
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sounds like there's more to report there. thanks so much. stay with us. we're asking the question, is the stock still worth investing in? rebecca lynnland, director of the auto group at global insight and eric merkel president of i think i said that wrong. >> >> thanks, eric. i'll give you the first question. obviously earnings will take a big hit here and then they'll have to add in all kinds of incentives to get people back into the showroom. how long does this play out and what is it mean for the stock over time? start with the first part, eric. what do you think? how long does this take to play out? >> i think it takes a while to play out. in the short term, it depends on what you mean by a while. >> well tell us. >> it is very hurtful to toyota. in terms of the market share, we're looking at they lose a point of market share this year with most of that being lost in the first half. maybe things improving a little bit by the second half provided
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that there aren't any more new recalls to come out here in the next two to three months down the road. nobody knows any longer because there's been so many of them and there have been so many different issues from floor mats to accelerator problems and hybrids. >> aren't they going to offer all kind of crazy incentives to get people in the showrooms and to get customers back onboard? >> they being potentially do that, melissa, absolutely. about an hour ago automotive news put out an alert that nhtsa is investigating power steering issues on the toyota corolla 2009 and '10s. i fear that the bad news is not over yet and we actually anticipate that they could lose as much as two points of market share in 2010. so it's really a terrible situation both for their financial condition and their long-term prospects as well. >> phil lebeau, can i ask you a generic question? there are some interesting
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articles on the web this morning about drive-by wires. >> right. >> the computerization of cars, sometimes they screw up, as in this case the sticky accelerator, sometimes they flash warnings that have nothing to did with the actual operations of the car, stuff is showing up in ford. how big an issue is this computerization and are other automakers going have to deal with what toyota's dealing with? >> well, the whole industry has to deal with it. you're talking about the growing use of electronics and vehicles, larry and it continues to grow as we become more complex, the vehicles become more complex. for toyota, this is reamly the key question that is out there. there have been repeated suggestions from both people that looked at some of the past investigations as well as those who filed complaints saying this is not a case of mechanical pedal being stuck by either a floor mat or being stuck physically when i pull back on it. this is an electronics problem. they have said it's not an electronics problem, but the question continues to swirl out there and as long as the question is out there until they
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can definitively say no, it's not. we've looked that the and electronics are not involved. how does that mold these congressional hearings? everybody's taken big, big sticks and whacked in toyota. that's what they're doing. now, if you come up with the electronics, what does that do with the investigation and what about the other carmakers out there, not just the american car makers fel, but all of the international carmakers? >> if electronics are ultimately deemed to be part of the problem here, huge issue for toyota. huge issue because they've said all along it's not the electronics and they've tried to replicate these problems and they haven't found it which brings up the question is there some sort of gremlin in the system, but that's a separate one. as far as electronics for the entire industry. this is something they're working on and they're concerned about because if it happens again to somebody else then you've got a huge issue. >> it all begs the question. we're looking at a chart right now. why is the stock up then if there's all this bad news out then, what are the investors
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seeing that the rest of us aren't? >> i think they're seeing it as a buying opportunity. we're not stock analysts and they're trying to explain what people that are are doing is very difficult, but i think people see it as a buying opportunity for toyota. it's typically a great company. they've had decades of very good, reliable vehicles. they're just going through a really bad patch right now. >> don't they have a lot of capital in the bank from their past performance and when you see this, they're getting their arms around it and we could be at the peak and the market is saying on. >> buying opportunity. >> exactly. it's a great buying opportunity. >> and they are an incredibly successful company. so i think people are looking at the big picture here and saying it's a bad patch, but the prospects are very good. >> we'll leave it there. thanks, there, buddy. >> when we come back, stocks are bouncing back in a big way after monday's triple digit dive. how do you play the markets? a bull/bear debate coming up,
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not to speak of trish regan coming up. >> hey, larry. also we'll talk about the most profitable magazine in the world. get ready, guys, cnbc is uncovering the big business of "sports illustrated" swimsuit issue and we'll get a sneak peek with darren rovell. you are watching cnbc, first in business worldwide.
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hi, folks. welcome back to "the call." i'm matt nesto. hig, the stock is down about 5% right now. $22, key support level that we can bust and seeing intraday momentum and you can see the chart beneath me there that shows we are pretty close to the low of the day. the company came in and we'll call it in line even though it beat concensus and they preannounced, you might have forgotten about a month ago and they met the midpoint. it was less than or equal to, hartford insurance the worst performing of 9 financial stocks in the s&p right now. >> thank you very much, mr. nesto. we have stocks falling 7% off their highs just. two week ago, but today, what do you know? we're up big here. 71, not as high as we were earlier in the session and stila
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i big improvement from biggest days and the question is where are we in all of this and how should you be playing the market. we'll go to the u.s. market strategist of cantor fitzgerald and joe battipaglia, joe, what's your take? what are you doing with your money as we speak? >> our balanced accounts we have 68% exposure to equities and predominantly large cap and some exposure to the developing economies, but what we're concerned about the growth rate in the developed world. deleveraging is still an issue, capacity access is still an issue. unemployment is at a high rate and unemployment is lower and we're trying to be defensive in our approach. >> more defensive. mark, do you buy into that strategy? >> think you have to have a certain amount that's defensive. we're 9.2% from high to low on the s&p and we were looking for a 10% pullback. i think the key here is really low inventories and the fact that we really haven't seen a lot of costs being added in the first quarter.
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i think the first quarter earnings, even though compared to the fourth quarter aren't going to be great, but a year ago they'll be actually quite surprising in that first quarter earnings report i think will drive the markets at least tradably higher in late march, early april. >> joe battipaglia, the greek default threat, the southern europe default threat, et cetera, et cetera, appears now to be moving and affecting credit spreads. u.s. corporate bond risk spreads have been widening against the treasury curve and emerging risk spreads have been widening. how big a problem is this? is there a contagion here? is that going on undermine stocks? >> no, i don't think there's a contagion, larry, because frankly since the residential housing crisis and subprime crisis the central banks have worked to forestall further problems so they're well aware of the issues and this is all part of the big deleveraging story. coming back to the u.s. we'll probably see 3 million to 4 million more foreclosures,
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unfortunately. we have them starting to look like greece and ireland and so forth in that they don't have the ability to continue to pay. >> how about the federal government? is the federal government starting to look like greece? >> not yet p, but with $3 trillion in deficits you could bought that to a challenge and we haven't accounted what to do with fannie and freddie which controlled the residential mortgage market. >> you were talking about your investment in emerging markets and let's talk about some of these countries overseas. when you look at portugal, spain, ireland, what are you doing? would you just stay clear and how does that affect your other european investments? >> well, we moved away from the developed economies of europe for the precise reason that their growth rates are not going to be there. their high unemployment rates are persistent. they're already taxed at the rate of 40% gdp so they can't raise taxes, so we moveda, way from there and the brazils and indias and places like that offer prospects for growth. companies are there quickly and
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investments to be there. we're suspicious of china for a whole other set of factors. it will hurt them eventually, so it's a dicey environment and europe is a tough place to be right now. >> mark, how worried is the stock market worried about ben bernanke this week and to pay interest on excess bank reserves and the whole saber rattling that thigh might start shrinking their balance sheet? >> you said the right word, saber rattling and it's a lot about politics and saber rattling. ben bern anke has made it clear and we're not going raise rates until we see the economy on a sustainable track and it is not going to change and he's going to make that clear. he'll back away from quant taste easing. >> so people start getting worried far long before they actually really need to start worrying here. the market yesterday getting spooked by the idea that the fed's coming up with the strategy, but shouldn't we all
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be happy that the fed is coming up with a strategy? >> the handwriting is on the wall, trish. sooner or later, and, look, the dollar's gotten very strong because the euro has collapsed here at loest for the moment. so maybe that stalls the fed out for a while, but we know the fed at some point will raise their target rate and start schranging their balance rate. we know that. >> third or fourth quarter, larry. third or fourth quarter. >> when do stocks discount that? i'm just trying to put a little heat on it. you're too complacent, mark. i want to get into this. >> higher taxes next year and a tighter fed. >> i think we've already started the process now. we're off 4.5% in the month of january. >> that's where i'm going. i'm trying to get some tension into this. >> think you'll get there in august and september and you'll get to those concerns and you're overdoing it right now and the pendulum has swung towards caution and it will swing back the other way. yes, it will come back especially as we get closer to the elections because it's going to get ugly.
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you know it's going to get ugly. so i do think that the pendulum will swing toward an exit strategy and september and october. >> the problem is the economy will not be --? she accused me of overdoing it in the past. i'm trying to bring this into relief. contagious debt problems, fed tightening, tax hikes. all right. i believe in the economic recovery, joe. i know you probably don't, but i'm just saying there are issues out there and i don't want us to be complacent. >> that's absolutely right and we keep forgetting to look at japan as a model of what can happen here. they've spent 15 years trying to reinflate themselves. they've had kuwait export businesses and companies that are world renowned though the economy never got moving and they stayed with a very low rate of interest over a long period of time. we could have narrow spreads and bad news in an economy that doesn't grow rapidly and it doesn't have the same uptick that it has in the past. you'll lose competitive advantage and valuation as a result of that. >> joe nailed it, exports,
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that's the key. exports. >> joe nailed it. >> which gets harder with the -- thanks so much, guys. we appreciate it. >> when we come back, coca-cola putting some fizz back into profits. we'll go inside the numbers and earnings central. >> it's one hot tech stock beating the street. shares up 120% in a year. the ceo joins us exclusively on "the call" with his profit picture. we'll be right back.
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federal agencies in washington, d.c., region remain closed for a second day as residents brace for yet another blizzard. the second major winter storm within a week expected to hit the mid atlantic states this afternoon extending to new york city and to boston. weather channel meteorologist jen carpango joining us with the latest. >> i just saw -- those are the flurries already affecting us in the nation's capital. advisories and warnings stretching 800 miles across the
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country. chicago, getting it first here. we're getting some snow continuing to pile up here. expecting one of the biggest snows of the season, believe it or want, for the chicago area. you would have to get more than seven and a half and we might just do that with this storm. cincinnati and louisville in dayton getting a lot of snow with this as we track it all heading toward the east. we'll watch what happens as it approaches the mid atlantic. same thing with last week. we'll see the energy and the moisture shift to the mid atlantic and so we'll get some significant totals. again, the midwest will get it simply because we'll have days of snow and take a look at some of these totals. 10 to 15 inches in new york city. this is a big deal for us and it comes over 24 hours. that is a lot of snow and a day of no new tax hikes. let's send it over to larry and tyler matheson. >> let that not go unnotice. >> just a little joke. >> i'm sure you will point out that the market is high are and
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the government is closed. >> oh, man, there's a woel lit rach our that, but i digress. a strong quarter for dow component coke ola. i'm joined by tyler matheson on earnings central. >> a little coca cola float here. the number i love here and look at this stock up 3% today at 54.42. the number i love of all of them, profits up 55% year over year. i don't care about your estimates and i don't care about your forecasts is, and what i care is real profit numbers hitting the bottom line and they did. there were strong sales most especially in asia and the developing world. basically flat in europe and north america, but look at that, in the pacific up 11% and latin america up 7%. >> why isn't anybody buying diet coke in the states? what's up with this? >> it's more saturated and a more mature market and there's discretionary income and they look at the luxuries in latin
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america and the pacific region and that's where the growth is for coca-cola. let's move on to biogen, intraday and here's an iffy report. the stock is higher by about 2%. why? well, nice forecasts. they expect revenue growth in the mid-single digit range and the non-gap earnings to be higher than the estimate. on the other -- and basically the fourth quarter eps beat estimates as well, larry, but the problem here is they've discontinued development on a couple of drugs, so they've got some pipeline issues, but the market obviously liking what they're seeing in terms of the earnings and let's move on now to pulte homes. here the fourth-quarter loss, 31 cents a share versus 19 cents a share estimate, but revenues were higher. the stock is down about 4%, however. revenues were higher and there were lots of writedowns that year. the closings are up 13% and the average selling price is down and they an earnings history and you can see how they play with the estimates and the actual. >> tylerings i've got to jump across and we're going to the breaking news desk for steve
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liesman. steve, what have you got? >> want you to know they canceled that hearing with bernanke tomorrow, but we are told they'll still release the testimony from bernanke at 10:00 a.m. tomorrow and the importance of that is he'll talk about exit strategies and something the market has been waiting to hear about and so the fed wants to deliver here in terms of letting the market and the rest of the country know about what the exit strategy is from the federal reserve. so no hearing on the hill for which the testimony was intended, but you still get your testimony tomorrow on exit strategies. melissa? >> oh, no. we'll get to that in a second. no, no -- >> i can't hear him. we'll get to that in a second. up next -- out of control this morning. it's one tech stock earnings are up double dij sxits shares triple digits in a year and its chief executive was recently named one of the best ceos in america. can you guess who it is or who that was shouting behind me? we'll have them both up next. >> okay. then president obama meeting top lawmakers on both sides of the aisle making his pitch here for a jobs bill, but are they buying
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welcome back to "the call," everyone. i want to get you caught up here on these markets. we're taking a look at the s&p. we are trading higher as we speak into green territory, up six points and a gain of better than half a percent. some speculation that perhaps the european union will bail greece out of its troubles. mr. triche eoe t on the plane.
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off the highs of the session and very much in positive territory as some bullish sentiment returns to this market. the nasdaq up 14. we want to go out to chicago where mr. santelli has the very latest on bonds and this dollar. hey, rick. >> hi, trish. well, indeed. it seems as though trades for whatever reason did expect some potential headlines as to fixing up greece because as we've gone into the cloud in the european markets we've seen a sense of disappointment. if you look at interest rates, a 10-ye 10-year yield, you can see it's starting to come down, exactly as many patterns as the boon whose yield is also coming down and i cowant to put an as terrific here. you don't see it on the chart, but greek yields on their ten year is down about 38 basis points and you can see there seems to be a sense that something's coming, but it's
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reversing out. now look at the important currencies. if you look at the euro versus the dollar, it was steady and quiet for two hours and it's starting to lose ground as well as the pound. the latter, in particular, fitch had headlines out that referenced the uk and some of the issues in europe about getting their fiscal house in order. that seems to be the phrase of the year so far. now let's any to melissa francis. >> rick santelli, thanks so much. the stock is up 100% in the past year andst ceo was recently named one of the top ceos in the country approximately cognizant technology solutions not only reported earnings that beat street expectation s, but they gave a strong outlook for the year as the stock rebounds and the stock there is up almost 5% as a result. joining us is frank d'souza ask cognizant financial solutions. where are they located?
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are any of them in the united states? >> absolutely. we added 16,000 positions around the world in 2009. 10,000 of those in the fourth quarter alone, give or take and our hiring was across the globe. we operate in many countries around the globe. our development centers in places like india and china, but equally our client facing teams here in the u.s. and in europe. so our growth was broad based as was our employment. >> i hate to press, but on a percentage basis would you say how many were here in the u.s. and do you need workers in the u.s. to support operations overseas as well? >> we absolutely do. on the percentage basis if you look at the head count across the globe, give or take, 75% of our people are in our development centers in india and in china and about 25 or so percent of our folks are out in the world located on-site in customer locations in the u.s., europe and other parts of the world. >> certainly a bullish sign that you're out there hiring. when you look at the economy and
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i want to bring this very much to a macro level, when you look at economy, what are you anticipating? some are calling this a double dip recession and it doesn't appear that based on your hiring. >> as we look at 2010, we gave strong guidance. we expect to grow by at least 20% on the top line in 2010. baked into, that however, is some conservatism in the back half of 2010. we think that the economic recovery in key markets around the world is still fragile, and there's still reason to be cautious and so the back half of 2010, we are making some caution into our planning to ensure that if, in fact, we do face a double dip or, you know, until we understand what this new normal is that everyone is talking about that we have some conservatism built into our outlook. >> what do you think about the plan to tax multinationals? how would it impact you and how would it change the way you do business? >> you know, when we look at our
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business and talk to our clients, what we do in our business is help our clients become stronger businesses at the end of day and given the current economic environment, i think the fastest way to get businesses strong and healthy again is by making the businesses and the countries around the world, the fastest way to get the economies healthy is to get the businesses healthy. so we think any public policy that limits the ability of businesses and our clients to get healthy fast is ultimately going to be detrimental to the long-term recovery. >> you think this would qualify as being detrimental to the businesses and your own. >> we've shown strong growth that we've helped clients and helping them innovate faster and become stronger businesses. we think anything that slows that down would ultimately up pact our client's ability to compete in the global marketplace. >> i can hear the peanut gallery
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and that would be larry kudlow making news. >> this is music to my ears. >> who says you can't play? >> we have president obama making a big pitch for jobs today. do you think that that's, in fact, the bullet that this economy needs? >> well, look, i think that there are multiple issues that we need to address and clearly with unemployment at 10%, jobs is a critical issue, i think equally importantly is the fact that we have in the u.s. in particular a skills mismatch while we have high unemployment. we also have a number of jobs that are unfilled because we lack the talent to be able to fill those jobs. so i think equally importantly, in addition to addressing the jobs issue, we have to address the education issue and being able to create the educational infrastructure in the u.s. that closes the skills gap. >> all right. leave it there. >> i'm hearing it --
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>> i'm hearing a nobel prize for today. >> yeah. frank, you're the one. all right. coming up next, we want to talk a little bit more about the jobs that the president is making a big pitch for. lawmakers, of course, getting ready to vote on this. we'll have the latest developments for you. >> did you want a nobel prize for the question? >> oh, i thought it was frank for his answer. >> no, he did mean frank, but i was just -- >> you can have a joint one. i give it out to several people at the same time. they're screaming at me. it's a multimillion dollar secret kept under wraps and darren rovell reveals the beauty, the fashion and the big business behind "sports illustrated" swimsuit issue in a special documentary this evening. we'll have a sneak peek.
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okay. we've got a market that's up big, both the s&p and dow climbing significantly, resuming that uptick amid news that all options are on the table with
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greece if terms of the eu and what they plan to do. all options are being considered as we speak and the market reacting accordingly, larry. >> thank you, trish. president obama meeting top lawmakers from both parties to make his pitch for a jobs bill. cnbc chief washington correspondent john harwood joins us with the very latest. good morning, john. >> the administration is always happy when the stock market's up, but the president has been focused throughout the beginning of this year on focusing on jobs and the 9.7% unemployment rate. larry summers came on cnbc earlier today and said the administration's emerging package is focused on tax cuts for business. >> that's yet president regards it as so important that we support business, support small business with the tax measures that he's proposed that would, for example, let them write off all their investments and would eliminate capital gains tax for categories of small business, would more broadly allow
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substantial first-year write-offs of investment for small businesses and for larger businesses. >> and you don't have to look far beyond the anchor desk of "the call" to know conservatives like tax cuts for business. the president's gathering leaders of congress from both sides and the president sound optimistic. >> i think there are some ideas on both the republican and democrat side that allow us to potentially, for example, lower rates for small businesses on their taxes to help spur on some growth and my hope is that both in the house and the senate will see some packages moving over the next several weeks. >> larry, what i'm hear tradition both sides is optimism that there is going to be an accord between top republicans and democrats in the senate that will allow a jobs bill to move forward, probably about $80
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billion and probably built, larry, around the payroll tax cut that chuck shumer and orrin hatch are working on designed for people that are out of work for some time. >> i'm hearing a lot of noise that i'm hearing about this. will the gop push back, for example, introducing the extension of the bush tax cuts, and tap tal gains and so forth or tax cuts for large and small companies including getting rid on the obama proposal on hiking the tax on corporate earnings. the republicans push back, john? >> i think they'll definitely push back. that is something that the administration pushed last year and didn't go anywhere. i don't think the republicans have to worry about that too much. if you push back on delaying the roll back of the bush tax cuts for the upper income people and they're not going to get very far. the white house is not going to go there and there will be back and forth negotiations and
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they'd hoped to do something this week, but the snow that we're headed for, another snowstorm today, may make that difficult mp. >> john harwood, thank you very much. over to trish. we've got "power lunch" coming up at the top of the hour and sue herera is standing by to give us a sneak peek. hey, sue. >> hi, trish. coming up we'll talk about billionaire investor warren buffet and treasury secretary hank paulson. the two titans are sitting down and holding a conversation on the economy. we will bring it to you live from omaha. can't wait to hear that conversation. also, has the national minimum wage hike helped american workers or actually killed hundreds of thousands of jobs? very interesting debate on that subject, and the social media wars. how big a threat is google to facebook and twitter? dennis kneale will weigh in on that one as you know he will, melissa. >> thank so much. a quick break and then 18 bikini-clad models and 150,000 photos to choose from. really, that many? cnbc takes an unprecedented look inside the most profitable
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magazine in the world, "the sports illustrated swimsuit issue." >> wasn't i just saying how darren gets all of the great assignment, not that i wanted that assignment. >> we'll have the market call heading into this afternoon's trading session so stay with us. you're watching cnbc, first in business worldwide.
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welcome back to "the call" with your daily realty check, i'm diana olick in washington. the nation's largest home builder pulte homes reported its 13th consecutive quarterly loss that despite charges being offset by a large tax gain in q4. the company lost $116.9 million or 31 cents a share and that compares to a loss of $1.33 a year ago. home prices in december continued their decline down 0.7% month to month according to integrated asset services. prices fell everywhere, but in the south where they rose 2.4% month to month. year over year and the prices down 5.3% expect realtor say all this snow that you might have noticed around me will affect home sales this month.
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prolonged weather events like the one we're seeing in the mid atlantic will postpone sales, but the good news is that the pent-up demand will come back in the coming months. check back with the realty checkup next at 2:50. until then go to the blog at >> brave soul. go back inside. s that time of year again. "sports illustrated" out with its annual swimsuit issue. it is not only big business for time inc. and it's also big business for the designers and we're taking the if you can't beat them, join them report. cnbc's business reporter joins us with more. >> it's not just for the men. it is also for the women, the lesson here. here we go. >> wait a second! >> i'll convince you. more than 64 million people read the "sports illustrated" swimsuit issue, 22 million of them are women who use it as a shopping guide because of that potential exposure to the buying public. >> no way. >> yes. designers and bathing suits, accessories and jewelry in hope
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of making the issue. i met a jewelry designer who took a chance in 2007 and made the cover two years later. >> while bikinis seem like a no-brainer for a swimsuit issue, other strings are also garnering great attention. silk-wrapped bracelets called body beads by margaret magard. >> as my husband said there's jewelry in a sports illustrated swimsuit? these pieces, the reason why they do well is you can wear it when you're 55 years old and you don't have to get into a bikini. you may not look like one of these girls in the magazine, but you could have a little piece of that. >> a yoga instructor, magard was crafting jewelry for friends in the basement of her milwaukee home. when she started selling outside her circle she ran across the 2006 swimsuit issue and it proved inspirational. months after sending her designs, magard got the call. her body beads made the 2007
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issue. >> and i sat there and i was looking through it and i said that's my jewelry. that's my jewelry. >> laughing or crying? >> i wasn't crying. i was kind of stunned. i was kind of stunned. my older son was in seventh grade at the time and he went to school and he told all his friends. my mom's in "sports illustrated" swimsuit and they said no, your mom's old! >> stay tuned for "power lunch," we'll interview this year's cover model brooklyn decker who found out yesterday and that's coming up on "power lunch." meet the designers and editors and let's not forget the models. tonight "sports illustrated" swimsuit issue. >> brooklyn decker will be live here at headquarters. there will be pounding on the door. >> no one will be in the cafeteria during that time. >> be sure to ask her her view oslo tax rates and king dollar. >> also if the worst is over for toyota. >> could we have a second
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bottom? >> we're a business and financial channel. that's what we are. i want to specify. >> darren rovell. everything is a double intend re. i can't win here. >> didn't heidi klum request to get paid in euros or something a ways back? >> just the route i would go and that's why i'm not doing the interview. all right. we're going to take a quick break and we are back with this morning's market action. >> and the list of stocks to watch as we head into afternoon trading. you're watching cnbc, first in business worldwide.
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okay. talk a look at that. the dow is up 166 points. everyone is saying this is because of the greek bailout. larry, what do you think about that? >> i think it's a relief rally, and i think it's on the rumors of the bailout. >> it's not because washington is closed and they can't get new taxes to us today. >> i want to say


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